Trade gap hits record for August

Falling oil prices may ease U.S. export-import deficit.

BY MARTIN CRUTSINGERTHE ASSOCIATED PRESS

Published: Friday, October 13, 2006 at 6:30 a.m.

Last Modified: Friday, October 13, 2006 at 12:00 a.m.

WASHINGTON - America's trade deficit unexpectedly jumped to a new record in August - marking the second straight month it has set a new record, the Commerce Department reported Thursday.
The gap between what the U.S. exports and what it imports rose by 2.7 percent to $69.9 billion.
The deterioration in trade was led by another record foreign oil bill, which pushed imports up to an all-time high, swamping a solid increase in exports, which also set a record. The politically sensitive trade deficit with China also set a monthly record at $22 billion.
With oil prices falling from the $77 per barrel level set in July to less than $60 per barrel this week, analysts said the August figure could be the peak for the deficits. But they cautioned that any improvement will come slowly given the huge gap between what America imports and what U.S. companies are able to sell overseas.

WASHINGTON - America's trade deficit unexpectedly jumped to a new record in August - marking the second straight month it has set a new record, the Commerce Department reported Thursday.<BR>
The gap between what the U.S. exports and what it imports rose by 2.7 percent to $69.9 billion.<BR>
The deterioration in trade was led by another record foreign oil bill, which pushed imports up to an all-time high, swamping a solid increase in exports, which also set a record. The politically sensitive trade deficit with China also set a monthly record at $22 billion.<BR>
With oil prices falling from the $77 per barrel level set in July to less than $60 per barrel this week, analysts said the August figure could be the peak for the deficits. But they cautioned that any improvement will come slowly given the huge gap between what America imports and what U.S. companies are able to sell overseas.<BR>